Contract Components for Internal Billing

To use intercompany billing or interproject billing, your implementation team must configure a number of distinct features within Oracle Fusion Enterprise Contracts. These features work in cohesion with financial and project features to create internal invoices and transfer revenue between organizations.

Contract Type for Intercompany Billing

Select the intercompany billing option on a contract type to identify a contract as enabled for intercompany billing. This option permits editing of the internal billing options of contracts of that contract type. These internal billing options include the attributes required to create the intercompany payables invoice such as expenditure type, expenditure organization, receiver project, receiver task, and the provider business unit.

Contract Type for Interproject Billing

Select the interproject billing option on a contract type to identify a contract as enabled for interproject billing. This option permits editing of the internal billing options of contracts of that contract type. These internal billing options include the attributes required to create the interproject payables invoice such as expenditure type, expenditure organization, receiver project, and the receiver task.

Contract Business Unit Internal Billing Options

Review and update the customer contract management business function options to control the processing of interproject billing. The following table describes the internal billing options that you must define for the contract business unit.

Feature Name	Description
Invoice Numbering Method	If you want to enter invoice numbers manually, select the manual option and either the alphanumeric or numeric invoice number type. If you want the application to create invoice numbers automatically, select the automatic option, and enter a starting invoice number.
Invoice Batch Source	Specify the invoice batch source for the interproject contract invoices that are transferred to Oracle Fusion Receivables.

Contract Line and Receiver Project

After you create an internal contract, link a contract line to the receiver project and task. This allows for the cross-charge transactions that are charged to the project and task to be billed from the provider business unit to the receiver business unit.

By default, the receiver project is also the associated project for the contract line, and you can't add another associated project or change the associated project for that contract line. However, the associated task and receiver task can be different, so you can select another associated task for the project if necessary.

The receiver project must have the same legal entity as the internal customer.

Note: Only one receiver project can be linked to a contract line. The intercompany invoice generation process automatically groups invoice lines by the contract lines. Interproject invoices have a fixed format.

Accounts Receivable Transaction Type for Internal Billing

You can choose to set the Open Receivables or Post to GL indicators on the Accounts Receivable Transaction Type setup to Yes or No for intercompany and interproject contracts.

Deselect the Open Receivables indicator on the Receivables Transaction Type if you want to transfer funds to clear balances, rather than paying individual invoices. You can also choose to leave the Post to GL indicator unchecked to prevent accounting of these invoices in Oracle Receivables.